Unemployment (Photo: iStock)
India’s employment data presents a rosy picture at first glance, with substantial growth reported year on year. However, a deeper dive into these numbers reveals a more complex and troubling scenario. The distinction between employment and meaningful employment is critical, and it is here that India faces a significant challenge. Much of the reported job growth stems from selfemployment, unpaid family labour, and temporary agricultural work. These roles, while technically counting as employment, do not provide the stability, income, or benefits associated with formal sector jobs.
This discrepancy raises questions about the real health of the Indian labour market and the effectiveness of current employment policies. Self-employment and unpaid family work on farms or home-based production often signify a lack of better opportunities rather than a genuine choice. Many people turn to these options out of necessity. In rural areas, where formal job opportunities are scarce, families rely on agriculture and other informal sectors to make ends meet. This kind of employment does not foster economic security or upward mobility. Instead, it perpetuates a cycle of poverty and uncertainty. The surge in agricultural employment is particularly concerning. Despite India’s progress in various sectors, the economy remains heavily reliant on agriculture, which employs a large portion of the workforce but contributes a shrinking share to the GDP.
This reliance on agriculture indicates regression rather than progress. Moving workers from agriculture to more productive and lucrative sectors is a key development goal that India is struggling to achieve. The quality of jobs is another crucial aspect. Formal jobs with regular wages and benefits are essential for economic stability and growth. They ensure workers have a steady income, access to healthcare, and other social protections. Unfortunately, only a small fraction of the Indian workforce enjoys these benefits. The majority are left to navigate the uncertainties of informal employment, which offers little in terms of job security or future prospects.
Economic indicators further underscore the problem. Despite reported employment growth, consumption remains weak. This discrepancy suggests that the new jobs being created are not generating sufficient income to drive spending. For an economy to thrive, job growth must translate into increased consumption, which fuels demand and stimulates further economic activity. The current situation in India, where consumption growth lags behind GDP growth, highlights the disconnect between employment statistics and economic reality. The government’s ambitious promises of job creation have not fully materialised, leading to growing discontent among the population.
Investment in infrastructure, pharmaceuticals, and green energy sectors, as outlined in political manifestos, is essential. However, these investments must translate into quality jobs that provide stable incomes and improve living standards. Without this focus, employment growth figures will continue to mask deeper economic issues. India’s employment challenge requires a multifaceted approach. Policymakers must prioritise the creation of formal sector jobs, invest in education and skills training to prepare the workforce for future opportunities, and ensure that economic growth benefits all segments of society.